Published September 28, 2017 | View complete press releases list |
Date: September 28, 2017
Categories: Financial Technology, technology, Transaction Banking
Keywords: MUFG, FSA, Blockchain, Digital Currency
Three major Japanese banking groups have launched a test to share customer identification information utilizing blockchain technology, used for digital currencies such as bitcoin, in a bid to make it easier for customers to open bank accounts.
The three groups, including Mitsubishi UFJ Financial Group Inc., aim to sort out issues by next spring that need to be addressed to put the data-sharing into practical use, officials said.
The Financial Services Agency plans to support the effort by setting up a special team to give advice on legal interpretations and other issues.
Currently, banks need to confirm the IDs of customers every time they open an account, including as part of measures against money-laundering.
It takes about a week to complete the procedure even with online applications, including for ID confirmation procedures by mail.
In the test, the three groups jointly set up a management body for blockchain.
When a bank account is opened, the customer’s ID information will be registered in the blockchain system. When the customer opens an account at a different bank, the registered ID information will be utilized.
The banking groups judged blockchain to be suitable for managing customer ID information. It is considered difficult to manipulate data managed with the technology, which stores data in a distributed network of multiple computers that monitor each other.
Re-disseminated by The Asian Banker from The Japan Times
Three major Japanese banking groups have launched a test to share customer identification information utilizing blockchain technology, used for digital currencies such as bitcoin, in a bid to make it easier for customers to open bank accounts.
The three groups, including Mitsubishi UFJ Financial Group Inc., aim to sort out issues by next spring that need to be addressed to put the data-sharing into practical use, officials said.
The Financial Services Agency plans to support the effort by setting up a special team to give advice on legal interpretations and other issues.
Currently, banks need to confirm the IDs of customers every time they open an account, including as part of measures against money-laundering.
It takes about a week to complete the procedure even with online applications, including for ID confirmation procedures by mail.
In the test, the three groups jointly set up a management body for blockchain.
When a bank account is opened, the customer’s ID information will be registered in the blockchain system. When the customer opens an account at a different bank, the registered ID information will be utilized.
The banking groups judged blockchain to be suitable for managing customer ID information. It is considered difficult to manipulate data managed with the technology, which stores data in a distributed network of multiple computers that monitor each other.
Re-disseminated by The Asian Banker from The Japan Times
